Sherwin-Williams remains committed to continuous improvement throughout all of our businesess. Year after year, we challenge ourselves to implement processes that reduce power usage and optimize waste generation and disposal.
Scope 1 and 2 Emissions
Our climate strategy follows a science-based approach and seeks to help limit global warming to below 2 degrees Celsius above preindustrial temperatures. We have set a goal to reduce our absolute Scope 1 and 2 emissions by 30 percent, which we intend to reach by expanding our use of renewable energy, increasing energy efficiency and investing in innovation.
We are making progress through concerted efforts across several areas under our operational control — including manufacturing and distribution facilities, transportation fleets, offices, labs and retail stores. We track and measure both Scope 1 and 2 absolute greenhouse gas (GHG) emissions, using the World Resources Institute (WRI) GHG Protocol Corporate Accounting and Reporting Standard as a way to improve efficiency as our business grows.
Investing in Renewable Energy
Investing in and installing electricity generation systems utilizing renewable energy is an important part of our Scope 2 emissions reduction strategy. We have a multidimensional approach that includes on-site solar energy, virtual power purchase agreements (VPPAs) and other forms of renewable energy procurement, such as renewable energy certificates (RECs). In 2025, we signed a new VPPA that will match nearly 100 percent of our electrical energy needs in the EU starting in 2026. Our North American VPPA also generated a full year of RECs. As of the end of 2025, our manufacturing operations had 13 on-site solar installations online in multiple regions. This contributes to 26 total projects expected to become operational over the next few years. In addition, several retail paint stores have on-site solar. We are evaluating additional on-site retail opportunities in areas with available ground or roof space and supportive policies for renewable installations.
Our Carbon Footprint in Context
Sherwin-Williams operates a multifaceted, global business that includes manufacturing and distribution facilities, paint stores, branches and offices, and a vehicle fleet. In addition to emissions from our direct operations, our value chain generates greenhouse gas (GHG) emissions outside our operational control – commonly referred to as Scope 3 emissions. Outlined below are further details about these sources of GHG emissions.
Focus on Our Fleet
Sherwin-Williams delivers products through a multichannel distribution network, shipping materials between manufacturing facilities and to distribution centers, paint stores and customers. These deliveries are supported primarily by our Company-owned fleet of tractor-trailers, with third-party carriers used as needed. Our trucking fleet participates in the U.S. EPA SmartWay program, supporting efforts to improve efficiency and reduce transportation related emissions through equipment upgrades, fleet optimization and collaboration with SmartWay-aligned carriers. In addition to our trucking fleet, we operate a fleet of several thousand passenger vehicles that our sales teams use to travel within their field areas. As of the end of 2025, approximately 20 percent of these light-duty vehicles worldwide were hybrid or electric vehicles. We intend to increase our proportion of hybrid vehicles over the next few years.
Understanding Scope 3 Emissions
We recognize that meaningful progress requires not only improving our own operations, but also collaborating across our value chain. By partnering with suppliers, customers and other stakeholders, we strive to drive further advancements in environmental performance. Most of our emissions are concentrated within two key Scope 3 categories: Category 1 – Total Purchased Goods and Services, which is primarily made up of the raw materials we procure, and Category 10 – Processing of Sold Products, which stems from the energy used to apply certain types of industrial coatings. These categories represent significant opportunities and challenges, as described on page 11. Rather than setting a formal goal in this area, our approach is to focus on actions within our control. For Category 1, we actively engage with suppliers to assess and encourage their decarbonization commitments. Of our top 60 percent of raw material suppliers by spend, 76 percent have set Scope 1 and 2 emissions reduction goals. Based on the most recent publicly available information, these suppliers have made an average of 22 percent reduction in Scope 1 and 2 emissions since they have set their baselines. We continue to explore opportunities to source biobased and/or recycled ingredients, such as the plant-based technology of Emerald® Symmetry™ Interior Acrylic, which LCAs calculate may carry a lower carbon emissions profile. Sherwin-Williams will continue collaborating with suppliers to understand how their actions impact our Scope 3 emissions and exploring opportunities to further reduce our collective environmental footprint. Scope 3, Category 10 – Processing of Sold Products, is also an area of focus. We innovate products that can be applied with lower cure times and temperatures. For example, our P544 Prime DTM Speed Elite for vehicle refinishing has air-drying technology that can reduce application time by up to 30 minutes, thereby lowering energy consumption and reducing GHG emissions associated with primer application compared to forced air drying.